TEMPO.CO, Jakarta - Indonesia's Financial Services Authority (OJK) has promised to strengthen the market reform agenda as a follow-up to the review conducted by Morgan Stanley Capital International (MSCI). The global index provider has maintained Indonesia's status as an emerging market but will continue to monitor the effectiveness and consistency of the capital market reforms.
OJK's Chief Executive of Capital Market Supervision, Financial Derivatives, and Carbon Exchange, Hasan Fawzi, expressed gratitude for the recognition of market strengthening agendas by MSCI. He stated, "The recognition and review results from this global index provider are not the end goal. This does not make us complacent," in an official statement on June 24, 2026.
OJK also appreciates MSCI's decision to continue monitoring and evaluating Indonesia's capital market reform agenda. Hasan mentioned that since February 2026, OJK has implemented various reform agendas to enhance transparency, integrity, liquidity, and market governance.
Hasan stated that OJK and the Self Regulatory Organization (SRO) of the capital market will continue to communicate reform efforts to global index providers and investors.
"We believe that the Indonesian capital market is still very prospective and attractive, both for domestic and global investors. This is supported by the well-maintained domestic economic fundamentals, a growing investor base, competitive stock valuations, and generally positive issuer fundamentals," said Hasan.
In the Market Classification Review of 2026, MSCI stated that institutional investors often express concerns about the transparency of share ownership structures and suspected coordinated trading behavior in the Indonesian capital market. However, MSCI acknowledged the reform efforts undertaken by the Financial Services Authority (OJK), the Indonesia Stock Exchange (IDX), and the Indonesia Central Securities Depository (KSEI).
"Although this announcement is a step in the right direction, what is important for international institutional investors is the consistent implementation and sustainable effects of these measures across the market," MSCI stated in their review on Wednesday, June 24, 2026. Therefore, MSCI will continue to assess the coverage, consistency, and effectiveness of the implementation of these measures.
MSCI stated that if the Indonesian capital market fails to show adequate progress by November 2026, they will consider various appropriate treatment options for Indonesia. These options include the potential consultation for a downgrade from an emerging market to a frontier market.
Read: MSCI Keeps Indonesia as Emerging Market, Warns of Concerns
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